$MUB Don’t rush. Whether the decline can be halted still needs to be confirmed—don’t get carried away.
Yesterday, the strong surge in the U.S. stock storage sector should have given many people a taste of the thrill of riding the trend. When we say “riding the trend,” it’s from a medium- to long-term perspective: the moving averages are still in a bullish configuration, pointing upward. Falling from a high level can be understood as a deep pullback.
The 20-week level is the key support. Whether the market can halt its decline depends on whether the formation turns out to be a hammer candlestick, or whether it’s confirmed after waiting two more weeks. Compared with the previous round of weekly-chart level correction, it has been more than three months. Back then, the pattern formed above the 20-week line was a “morning star,” and the sell-off-halt signal was quite clear.
This time, the price is likely to trade sideways between 1000 and 750, and then choose a direction. So, for a new major upswing to kick off again, one condition must be met: hold above 1000. Otherwise, it’s just for short-term swings; for the medium- to long-term, we still need to wait for confirmation.
Short-term trading opportunity: key support is around 750. Near 800, you can try spot positions, with a target of 1000.
Yesterday, the strong surge in the U.S. stock storage sector should have given many people a taste of the thrill of riding the trend. When we say “riding the trend,” it’s from a medium- to long-term perspective: the moving averages are still in a bullish configuration, pointing upward. Falling from a high level can be understood as a deep pullback.
The 20-week level is the key support. Whether the market can halt its decline depends on whether the formation turns out to be a hammer candlestick, or whether it’s confirmed after waiting two more weeks. Compared with the previous round of weekly-chart level correction, it has been more than three months. Back then, the pattern formed above the 20-week line was a “morning star,” and the sell-off-halt signal was quite clear.
This time, the price is likely to trade sideways between 1000 and 750, and then choose a direction. So, for a new major upswing to kick off again, one condition must be met: hold above 1000. Otherwise, it’s just for short-term swings; for the medium- to long-term, we still need to wait for confirmation.
Short-term trading opportunity: key support is around 750. Near 800, you can try spot positions, with a target of 1000.